Answers
The GDP deflator and the consumer price index will both show an increase in the cost of locally produced bread.
Gross domestic Product?
A lot of acronyms are used by economists. The GDP, or gross domestic product, is one of the most often used. It is frequently cited in reports by governments, central banks, and the business sector as well as in newspapers, on television news, and in publications.
How is GDP calculated? What is GDP?GDP is calculated as private consumption plus gross domestic product plus public investment plus (exports – imports). The country's official statistical office often uses the international standard to calculate GDP.
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Related Questions
please refer to the following process consisting of five machines producing a metal part. the parts move from machine to machine in the sequence shown. the time each machine takes to work on the part is also shown. which machine in this process is the bottleneck machine?CAN ASK THIS QUESTION AS TEXT WITHOUT INCLUDING DIAGRAM OF THE SEQUENCE:
A process consists of five machines producing a metal part. The parts move in sequence from Machine 1 to Machine 5. Processing at Machine 1 takes 10 seconds then the parts move to Machine 2 where processing takes 15 seconds. In Machine 3, the processing takes 12 seconds and in Machine 4, the processing takes 20 seconds. The parts finally move to Machine 5 where processing takes 18 seconds. Which machine in this process is the bottleneck machine?
a. Machine 1
b. Machine 2
c. Machine 3
d. Machine 4
e. Machine 5
Answers
Based on the discussion, Machine 4 does have the longest processing (20 seconds). As a result, Machine-4 is the process's bottleneck.
What is a machine, and what are some examples?
A device is a hardware device that does active work. This is in contrast to an entity that performs work passively, such as a drainpipe. A machine consumes power but is not always electrical. Machines, for example, can be powered by breeze, water, thermal, chemical, or human power.
What are the five most important simple machines?
The wheel and axle, the pulley, predisposed plane, screw, wedge, and lever are examples of simple computers that are widely used.
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What differentiates the master builder approach prior to the Renaissance from later approaches?
A. The architect and engineer roles are clearly separated into separate project phases.
B. Knowledge is confined to particular individuals and not shared or formalized into a recognizable set of standards.
C. The engineering and construction roles dominated projects because architectural designs were so simple.
D. Projects do not depend on individual knowledge but leverage the total knowledge of the team.
Answers
Answer:
Design-Build, though not new as a delivery method for building projects, appears to be on the rise. Traditionally known as the Master-Builder method, it is a means of building where one party holds responsibility for both the design and the construction. The Master-Builder method was the only method before the now ubiquitous design-bid-build project structure. The Romans for example, famous for their roads, aqueducts, and amphitheaters, did not design a project, bid it out to subcontractors, and then select the low bidder to build it, but rather designed and built structures in a collaborative, somewhat simultaneous fashion. In building a house for a client during Colonial times, one party, such as a master carpenter, was responsible for delivering the general layout and exterior details, selecting structural members, and completing construction. In this way, the carpenter acted as the architect, engineer, and builder simultaneously. The concept of design, bid, and build arose out of the natural specialization of the architect, engineer, and builder in the post-1850s world, where modern structural engineering was born and separated from architecture, and architects and builders fully separated as distinct and separate entities.
Explanation:
thats what is said when i looked it up.....5 wedsits
Answer:
B. Knowledge is confined to particular individuals and not shared or formalized into a recognizable set of standards.
Explanation:
The opportunity cost of producing a pair of pants in the USA is 5 bushels of wheat, while in China, it is 2 bushels of wheat. As a result:
there can be mutual gains from trade to the two countries if the USA exports wheat to China in exchange for pants.
The USA has a comparative advantage over China in the production of pants.
there can be mutual gains from trade to the two countries if the USA exports pants to China in exchange for wheat.
China has a comparative advantage over the USA in the production of wheat.
there can be mutual gains from trade to the two countries if the USA exports wheat to China in exchange for pants.
Answers
As a result of these statistics there can be mutual gains from trade to the two countries if the USA exports wheat to China in exchange for pants.
What is opportunity cost?Opportunity cost is frequently referred to as the second-best option. The loss of gain that would have been realized if a different option had been chosen is sometimes referred to as the alternative cost. The loss of benefit as a result of a change in choice is another way to explain it.
It is a term used in economics that derives from the reasonable premise that resources are scarce. The number of production options will be constrained by the limited resources. Due to the limited number of production options, it is necessary to set aside the creation of alternative combinations of commodities in order to produce a specific set of goods.
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Indicate whether each of the following types of transactions will either (a) increase owner’s equity or (b) decrease owners equity
Answers
Revenue and owners investment would increase owners equity whereas expenses and owners withdrawals would decrease it
What is owners equity?
Owners equity refers to the capital contributed by the owners and retained earnings that increased it over time since the capital was invested
Expenses would decrease owners equity because it will reduce the profits which are to be added to owners equity
Revenue would increase owners equity since it would increases net the profit
Owners new investment would increase owners equity as it is an additional owners equity invested in the company
Owners withdrawals would decrease owners equity since it means the owners withdrawing part of their invested capital
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Full question:
Indicate whether each of the following types of transactions will either (a) increase owner's equity or (b) decrease owner's equity:
1. Expenses.
2. Revenues.
3. Owner's investments.
4. Owner's withdrawals.
1. By giving yourself a safety cushion on all sides of the vehicle you improve your ability to? 1. stop 2. maneuver 3. think 4. all of the above
Answers
Answer: 4
Explanation: All of the above
Disadvantage of not having Poka-Yoke
Answers
The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.
Using this information, please compare the investment in the 5% 15-year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).
The annual investment returns are as follows:
Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%
Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)
Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%
Year 13 29.60% Year 14 11.39% Year 15 (0.73%)
The bond interest payment of 5 percent is paid annually and not reinvested. To compare accurately with the bond investment, the stock dividend will not be reinvested, but paid annually as well.
Please calculate the value of the stock account at the end of each year and the dividend income from the stock on an annual basis.
Once you have performed the calculations, please let me know if you prefer to invest in a 5% corporate bond for 15 years or the stock and why.
What is the value of the stock after year 2? Year 8? Year 11? When does the annual dividend income of the stock exceed the annual interest income of the bond?
Answers
1. The value of the stock account after Year 2 is $155,401.626.
2. The value of the stock account after Year 8 is $96,110.0674.
3. The value of the stock account after Year 11 is $96,110.0674.
4. The annual dividend income of the stock exceeds the annual interest income of the bond at the end of Year 15.
Bond interest rate: 5%
Stock dividend yield: 3.7% (10% less than S&P 500 average yield)
Stock dividend growth rate: 3% (50% of S&P 500 dividend growth rate)
We'll assume an initial investment of $100,000.
Year 1:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $100,000 + ($100,000 * 0.2337) = $123,370
1. Year 2:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $123,370 + ($123,370 * 0.2638) = $155,401.626
2. Year 8:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $155,401.626 + ($155,401.626 * (-0.3849)) = $96,110.0674
3. Year 11:
Bond interest income: $100,000 * 0.05 = $5,000
Stock dividend income: $100,000 * 0.037 = $3,700
Value of stock account: $96,110.0674 + ($96,110.0674 * 0) = $96,110.0674
4. At the end of Year 15, the dividend income of the stock exceeds the interest income of the bond.
Stock dividend income: $100,000 * 0.037 = $3,700
Bond interest income: $100,000 * 0.05 = $5,000
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Explain how utility could be used in a decision where performance is not measured by monetary value
Answers
Utility can be applied in decision-making situations where performance is not solely measured by monetary value.
Utility is a concept that can be used in decision-making scenarios where performance or outcomes are not solely measured by monetary value.
Utility refers to the satisfaction, well-being, or value that an individual derives from a particular outcome or alternative. It provides a framework for decision-makers to consider non-monetary factors and subjective preferences.
In situations where performance is not easily quantifiable in monetary terms, utility can be used to assign subjective values or preferences to different outcomes. Decision-makers can assess the potential utility or satisfaction associated with each alternative and choose the option that maximizes overall utility.
For example, let's consider a decision regarding the selection of a vacation destination. The performance in this case is not directly measured by monetary value, but rather by the level of enjoyment and personal preferences.
Utility theory can be applied by evaluating the potential utility associated with each destination based on factors such as climate, cultural experiences, outdoor activities, and personal interests. Decision-makers can assign subjective values or rankings to these factors and consider their individual utility weights.
By considering utility, decision-makers can make choices that align with their personal preferences and maximize their overall satisfaction or well-being. They may prioritize destinations that offer experiences they value the most, even if it comes at a higher cost or involves trade-offs with other factors.
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The nation of Toyland has seen the total value of the goods and services it produces increase rapidly over the past year. What is the most likely result of this change? a. A rise in Tryland’s GDP b. A rise in Tryland’s CPI c. A rise in Tryland’s unemployment rate d. A decline in the number of workers who are structurally unemployed
Answers
Answer:
BIG monkie
Explanation:
monkie
Using Activity Based Costing, calculate the rate for each cost driver.
13 marks b) Using activity based budgeting, prepare a budgeted yearly operating statement for
Aero3D Ltd. Show the following separately, within the statement.
i. The budgeted output for each product per year;
ii. The contribution to profits for each product and in total before charging activity based costs;
iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs);
iv. The total profit after charging core based costs.
Answers
i. Budgeted output for each product per year is XS PRO: 3,400 units and POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs are XS PRO: £561,000 + POLYX: £379,800 (£940,800)
iii. Profit for each product and in total after charging activity-based costs but before charging core costs are XS PRO: Profit after activity-based costs and POLYX: Profit after activity-based costs
iv. Total profit after charging core costs: Total profit after charging core costs
How did we arrive at these values?To calculate the rate for each cost driver using Activity Based Costing (ABC), divide the total cost of each cost pool by its respective cost driver.
a) Calculation of rates for each cost driver:
1. Condensing machine:
Rate = Total cost of condensing machine / Number of production batches
Rate = £450,000 / 60
Rate = £7,500 per batch
2. Shaping machine:
Rate = Total cost of shaping machine / Shaping machine hours
Rate = £130,000 / (3,400 × 0.50 + 1,800 × 0.70)
Rate = £130,000 / 2,400
Rate = £54.17 per shaping machine hour
3. Manual handling of material:
Rate = Total cost of manual handling of material / Weight of material handled
Rate = £55,000 / (3,400 × 1.2 + 1,800 × 1.4)
Rate = £55,000 / 7,040
Rate = £7.80 per kilogram of material handled
b) Budgeted yearly operating statement for Aero3D Ltd:
i. Budgeted output for each product per year:
- XS PRO: 3,400 units
- POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs:
Contribution per unit = Selling price - Direct material cost - Direct labor cost
- XS PRO: £175 - £8 - £2 = £165 per unit
- POLYX: £225 - £10 - £4 = £211 per unit
Contribution before activity-based costs:
- XS PRO: £165 × 3,400 = £561,000
- POLYX: £211 × 1,800 = £379,800
Total contribution = £561,000 + £379,800 = £940,800
iii. Profit for each product and in total after charging activity-based costs but before charging core costs:
Cost breakdown per unit:
- XS PRO:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
- POLYX:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
Profit after activity-based costs but before core costs:
- XS PRO: Selling price - Total cost per unit
- POLYX: Selling price - Total cost per unit
iv. Total profit after charging core costs:
Total profit = Total contribution - Core costs
Since the core costs are given as a fixed amount and not linked to any activity or cost driver, they are not allocated using the ABC method.
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Characterize the totality of a territory
Answers
Incomplete question. However, I inferred you want to know what characterizes the totality of a territory?
Explanation:
The basic characteristics of a place include;
the topographical features,the atmospheric, andthe biological processes;A territory's topological features include factors like the elevation of the place, etc.
If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why? (3-6 sentences. 2.0 points)
Answers
Answer:it is B
Explanation:its the mosr resonable
Which report do you produce to see total sales for the company?
Answers
Suppose that Markus Braun was trying to decide where he should open businesses next. He wants to make a rational decision. What should be his first step in making that decision?
a . Define the problem.
b. Generate alternative courses of action.
c, dentify criteria for judging the decision.
d. Compute the optimal decision.
Answers
Markus Braun's first step in making a rational decision is a. Define the problem.
The definition of the problem of where to open businesses will enable Markus to:
Establish critical decision criteria that will be used to adjudge the different choices.Ascertain and evaluate the optimal locations that will meet his investment requirements.
Six decision-making processes identified for achieving satisfactory outcomes include:
Step 1 is the Identification of the Problem Step 2 is the Establishment of the Decision Criteria Step 3 is the Weighing of the Decision Criteria Step 4 is the Generation or Identification of Alternatives Step 5 is the Evaluation of Alternatives Step 6 is the Selection of the Best Alternative
Thus, wherever these processes are followed, the probability of achieving favorable outcomes become higher.
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Which set of items appears on the loan estimate
Answers
I hope this helped
Which of the following applies to a marketing intermediary located in michigan who buys brand name toothpaste from 20 different manufacturers consolidates offerings and then needs the various brands of 500 supermarkets in Georgia?
Answers
Answer:
hey how are you have u eaten today <33333333
Data collected from selected major metropolitan areas in the eastern United States show that 5% of individuals living within the city limits move to the suburbs during a one-year period, while 2% of individuals living in the suburbs move to the city during a one-year period.
Prepare the matrix of transition probabilities.
Answers
Imagine you and a friend are in college. You decide you want to open a coffee shop on campus next to the university’s dining room. You make your appeal to the administration by expressing how having a coffee shop on university grounds will help fellow students save time and money since they will not have to go off campus to purchase their favorite hot beverages and baked goods. The administration is open to the idea and praises your entrepreneurial spirit. They ask you to research the business ownership structure that would be most appropriate by comparing and contrasting the structures, and report back to them in two weeks.
Follow these steps to complete this activity. You will create a chart, a Venn diagram, and a report based on the directions below.
Step 1: Compare and Contrast Chart
Create a compare and contrast chart of the following business structures:
sole proprietorship
partnership
limited liability corporation
Include at least three advantages and disadvantages of each structure, including the legal implications of each ownership structure.
Step 2: Create a Venn diagram
Create a Venn diagram transferring the details from the chart.
Identify those characteristics that are similar in the cross-section.
Place contrasting characteristics in the outer rings.
Step 3: Compile a Report
Determine which structure would be most appropriate for the coffee shop.
Compile a report identifying the structure you chose.
Provide three reasons explaining your choice.
Answers
| Business Structure | Advantages | Disadvantages | Legal Implications |
| ------------------------ | -------------------- | --------------------| ------------------- |
| Sole Proprietorship | Easy to set up | Unlimited liability | Personal liability |
| | Complete control | Limited resources | No separate entity |
| | Simple taxation | Difficulty raising capital | |
| Partnership | Shared responsibility | Unlimited liability | Shared liability |
| | More resources | Potential for conflicts | No separate entity |
| | Simple taxation | Difficulty raising capital | |
| Limited Liability Company | Limited liability | Higher formation costs | Separate legal entity |
| (LLC) | Flexible management | Formalities required | Pass-through taxation |
| | Ability to raise capital | Potential for disputes | |
Step 2: Create a Venn diagram
See attached image for the Venn diagram.
Step 3: Compile a Report
After considering the advantages and disadvantages of each business structure, we have determined that a Limited Liability Company (LLC) would be the most appropriate ownership structure for our coffee shop.
Firstly, an LLC provides limited liability to its owners, which means that their personal assets are protected in case the business faces any legal issues or debts. This is important for us as we are just starting out and cannot afford to put our personal assets at risk.
Secondly, an LLC provides flexibility in management and ownership. The members of an LLC can choose to manage the business themselves or hire a manager to do so. Additionally, they can choose to have equal or unequal ownership shares in the business. This flexibility will allow us to make decisions and run the business in a way that suits our needs and goals.
Lastly, an LLC provides pass-through taxation, which means that the profits and losses of the business are reported on the personal tax returns of the owners. This avoids double taxation that can occur in other business structures, such as corporations. It also simplifies the tax filing process for us as owners.
In conclusion, the LLC structure provides the protection, flexibility, and simplicity that we need for our coffee shop. It allows us to focus on building and growing our business without worrying about the legal and financial risks associated with other structures.
How are payday lenders different from a bank or credit union?
A. Payday lenders usually offer loans at a much lower rate than
banks and credit unions.
B. Payday lenders usually don't require collateral, unlike banks and
credit unions.
C. Payday lenders often offer loans to people who are unable to get a
loan from a bank or credit union.
D. Payday lenders often offer loans for a longer term than banks or
credit unions.
Answers
The difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.
What is payday lending?Payday lending is a type of short-term borrowing where a borrower receives a high-interest credit based on personal income.
The characteristics of payday lending include:
Small-term loansSmall amounts of money are involvedAvailable at short noticeInterest rates are high.Thus, the difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.
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Answer: the answer is C (PAYDAY LENDERS OFTEN OFFER LOANS TO PEOPLE WHO ARE UNABLE TO GET A LOAN FROM A BANK OR CREDIT UNION!!!)
Explanation: I just took the test!
2. Study the extract below and answer the questions that follow. In many of the world's economies, such as the United States of America (USA), private individuals can choose where they want to work, own land and businesses. In other economies, such as Cuba, the government owns the land and businesses and tells people what to produce. These countries use different economic systems. There are three different economic systems, namely a planned, market and mixed market economic system. 2.1. Identify the type of economic system that is used by the USA. Motivate your answer by quoting from the text. (2x1) (2) Identify the type of economic system that is used by Cuba. Motivate your answer by quoting from the text. (2x1) (2) Which economic system is used in South Africa? Differentiate between a planned and market economic system. Discuss THREE characteristics of a mixed market economy. (2x2) (4) (3x2) (6)
Answers
Answer:
The type of economic system that is used by the USA is a market economic system. This is indicated in the text by the statement that "private individuals can choose where they want to work, own land and businesses".
The type of economic system that is used by Cuba is a planned economic system. This is indicated in the text by the statement that "the government owns the land and businesses and tells people what to produce".
South Africa uses a mixed market economic system.
A planned economic system is characterized by government control and central planning. In such a system, the government determines what goods and services are produced, how they are produced and distributed, and what prices they are sold at. The government also owns and controls all major industries and resources. In contrast, a market economic system is characterized by private ownership of resources and businesses, and the decisions about what goods and services to produce and how to distribute them are made by individuals and firms in the marketplace.
A mixed market economy combines elements of both planned and market economies. Some of the characteristics of a mixed market economy include:
Private ownership of resources and businesses alongside state ownership or control of some resources and industries
Decisions about what goods and services to produce and how to distribute them are made both by individuals and firms in the marketplace and by the government
A mix of government regulation and free market competition to balance the interests of individuals and society as a whole.
Explanation:
Petroleum Inc owns a lease to extract crude oil from sea It is considering the construction of a deep sea oil rig at a cost of $50 million (I0) and is expected to remain constant The price of oil P is $40bbl and the extraction costs are $25bbl The quantity of oil Q 300,000 bbl per year forever The risk free rate is 6 per year and that is also the cost of capital (Ignore taxes). Suppose the oil price is uncertain and can be $60/bbl or $30/bbl next year with equal probability, then what will be the expected NPV of the project if postponed by one year ?
Answers
The expected NPV of the project if postponed by one year is 58.9m.
When oil price is = 60 bbl
\([\frac{(60-25)*300000}{0.06} ]-50000000\\\\=175000000-50000000\\\\= 125000000\)
When oil price is 30bbl =
\([\frac{(30-25)*300000}{0.06}]-50000000\\\\25000000- 50000000\\\\= -25000000\)
This is negative so we have to reject it and put it at 0
The Expected NPV\(\frac{0.5(0)+0.5(125000000)}{1.06}\)
= 58.9m
The expected NPV of the project if postponed by one year is 58.9m.
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Cash turnover is 4.5 times with no of days in a year 360 days. Annual cash outflow is 175000. Accounts payable can be stretched by 20 days and it will cost 700 per annum. Is it beneficial to get the accounts payable stretched if the return on investment is 8%.
Answers
When the return on investment is greater than 8%, it would be beneficial to stretch the accounts payable as it would generate a positive return.
How to explain the turnover?To determine whether it is beneficial to get the accounts payable stretched, we need to calculate the net cash flow generated by the move and compare it to the cost of the extension.
First, we can calculate the cash turnover ratio:
Cash turnover = 4.5 times
Days in a year = 360 days
Cash turnover ratio = 4.5 times / 360 days = 0.0125
Next, we can use this ratio to calculate the average amount of cash held by the company:
Annual cash outflow = 175000
Average cash held = Annual cash outflow / Cash turnover ratio = 175000 / 0.0125 = 1400000
Then, we can calculate the cost of stretching the accounts payable by 20 days:
Cost of extension = 700 per annum
Finally, we can calculate the net cash flow generated by the extension:
Net cash flow = Average cash held - Cost of extension = 1400000 - 700 = 1399300
To check if the net cash flow is positive or not and it's worth to stretch the accounts payable we need to calculate the return on investment:
Return on investment = (Net cash flow / Cost of extension) x 100
If the return on investment is greater than 8%, it would be beneficial to stretch the accounts payable as it would generate a positive return.
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Anastasia is a principal who is responsible for telling one of her teachers that the school will be cutting her Spanish program in the fall. She has been friends with this teacher for years and knows that the teacher will be very upset. What is the most appropriate communication channel for Anastasia to choose to share this news with the teacher in this scenario?
Question 2 options:
She should send the teacher a formal, typed letter.
She should talk to the teacher face-to-face.
She should send the teacher a text message.
She should post the news on the school website.
Answers
Answer she should talk to her face to face
Explanation:
if she respects this woman that is the best way to keep it
QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)
Answers
Answer:
rat
Explanation:
Waterway Industries owned 22500 shares of Carla Vista Co. purchased in 2017 for $618750. On December 15, 2020, Waterway declared a property dividend of all of its Carla Vista Co. shares on the basis of one share of Carla Vista for every 10 shares of Waterway common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Carla Vista shares held by Waterway was $910000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of:________
Answers
Answer:
I don't know sorry I think 123456789p
Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242
Answers
Here is the ROIC calculation for Apple, Inc.:
The ROIC calculationNet income (loss) $14,030
Interest expense $0
Taxes $14,030
Net operating profit after taxes $28,060
Average invested capital $176,064
Return on invested capital (ROIC) 15.9%
The following table compares Apple's ROIC to that of BlackBerry:
Company | ROIC
------- | --------
Apple | 15.9%
BlackBerry | 4.9%
As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.
Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.
Here are some of the reasons why Apple has an advantage over BlackBerry:
Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.
Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.
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Q1: What are the strategically relevant components of the pizza
restaurant segment of the U.S. quick service restaurant industry
macro-environment?
Answers
The strategically relevant components of the pizza restaurant segment of the U.S. quick service restaurant industry macro-environment are as follows:
Technological advancements: In recent years, the pizza industry has seen technological advancements, including the ability to place online orders, which can result in increased customer convenience. Many pizza restaurants have mobile apps that customers can use to order food, making it easier to use their services. Online advertising has also been used by pizza restaurants to reach new customers.
Environmental factors: Pizza restaurants need to consider the effect of weather changes on sales. Extreme weather events can affect sales as people tend to avoid ordering food when they cannot go out of their homes. Pizza restaurant owners need to evaluate how they will deal with such instances.
Demographic factors: Demographics play a crucial role in the success of pizza restaurants. The pizza restaurant industry targets a broad range of customers and has a significant customer base among younger customers. In recent years, there has been an increase in health-conscious customers, leading to changes in the pizza industry, including the addition of new healthy menu items.
Socio-Cultural factors: The pizza industry has experienced increased competition from new entrants such as gourmet pizza restaurants. The preference of customers for the type of pizza and the eating experience has also changed. People prefer pizzas that are customized to their taste buds, including the type of crust and toppings.
Political/Legal factors: Pizza restaurants need to comply with government regulations such as health and safety standards, as well as taxes. The pizza industry is also affected by regulations on labor practices and food labeling requirements.
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A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables
Answers
Answer:
a. Account Receivables turnover = Sales / Average Account Receivables
Account Receivables turnover = $3,150,000 / $210,000
Account Receivables turnover = 15
b. Number of days sales in receivables = 365 / Account Receivables turnover
Number of days sales in receivables = 365 days / 15
Number of days sales in receivables = 24.33 days
estion 1 Describe four demerits of incomplete records. (4 marks) (b) Becky, a sole trader, does not keep proper books of accounts. From your investigati discovered that she kept a small notebook into which she recorded all cash receipts payments for the year ended 31 March 2022. Receipts Cash in hand Sales Trade receivables Capital introduced Receipts and Payments Account GHe Payments 0 Shop premises Shop fittings Inventory Trade receivables Trade payables Rent prepaid Electricity bill outstanding 11,500 Rent 62,000 Communication expenses 32,500 Electricity 15,000 Purchases Trade payables 121,000 Insurance Drawings Sundry expenses Shop fittings Cash in hand Her assets and liabilities at the beginning and at the end of the year were a- 31/03/2022 31/03/ GH¢ 205,000 33,500 65,500 13,000 5,500 1,800 300 GH 225. 26 60 Discount received and discount allowed were GH¢800 and GH¢1,C Cost of goods returned by trade debtors were GH¢1,500. Cost of goods returned to trade creditors amounted to GH¢1,200. Capital introduced during the year amounted to GH¢15,000. re required to prepare: Statements of affairs as at 31 March 2021 and 31 March 2022 [8 ma A statement of profit or loss for the year ended 31 March 2022. [8 n [Total
Answers
Answer:
(a) Demerits of incomplete records:
1. Incomplete records make it difficult to track the financial performance of a business accurately, which can lead to poor decision-making.
2. It becomes challenging to prepare financial statements such as the income statement, balance sheet, and cash flow statement, making it difficult to assess the financial health of the business.
3. Incomplete records can lead to errors and inaccuracies in tax filings, which can result in penalties or legal issues.
4. It becomes difficult to identify fraudulent activities such as embezzlement, theft, or financial mismanagement, leading to financial losses.
(b) Based on the information provided, the following statements and calculations can be prepared:
Statement of Affairs as at 31 March 2021:
Assets:
Cash in hand: GH¢ 300
Trade receivables: GH¢ 5,500
Inventory: GH¢ 13,000
Shop fittings: GH¢ 33,500
Total assets: GH¢ 52,300
Liabilities:
Trade payables: GH¢ 1,21,000
Rent prepaid: GH¢ 11,500
Electricity bill outstanding: GH¢ 0
Total liabilities: GH¢ 1,32,500
Capital: GH¢ 2,05,000
Statement of Affairs as at 31 March 2022:
Assets:
Cash in hand: GH¢ 1,800
Trade receivables: GH¢ 65,500
Inventory: GH¢ 33,500
Shop fittings: GH¢ 33,500
Total assets: GH¢ 1,34,300
Liabilities:
Trade payables: GH¢ 0
Rent prepaid: GH¢ 0
Electricity bill outstanding: GH¢ 15,000
Total liabilities: GH¢ 15,000
Capital: GH¢ 2,25,300
Statement of Profit or Loss for the year ended 31 March 2022:
Cash receipts: GH¢ 2,05,000
Capital introduced: GH¢ 15,000
Total income: GH¢ 2,20,000
Expenses:
Purchases: GH¢ 1,21,000
Rent: GH¢ 62,000
Communication expenses: GH¢ 32,500
Electricity: GH¢ 15,000
Sundry expenses: GH¢ 1,800
Drawings: GH¢ 60
Cost of goods returned to trade creditors: GH¢ 1,200
Total expenses: GH¢ 2,32,760
Net loss: GH¢ 12,760
Hope this helps!
What are the advantages of a presentation
Answers
Answer:
THE PERSON BELOW ME IS CORRECT
Explanation:
Answer:
people will get the idea more... and you could show stattistics for them/people you are showing the presentation they could be on the wrong side but you show ur presentation and boom their on the right side
Explanation: